Why we are heading towards an Economic Collapse and the Steps you Need to Take to Survive

While the political morons in Washington would like you to believe our countries on the road to recovery, a new survey from the Associated Press suggests the complete opposite is true.

According to their study, four out of every five Americans are struggling with joblessness, poverty, or a reliance on welfare to sustain their lifestyle. Considering we currently have over 101 million people, a stunning third of the U.S. Population, receiving subsidized food assistance from the federal government, these numbers should be a huge wakeup call for anyone who bought into the scam of a recovering economy.

When the number of people receiving government food assistance (101,000,000) surpasses the number of full-time private sector workers in the U.S. (97,180,000) we have some serious trouble brewing.

We are nowhere near Out of the Woods; I believe the collapse is still coming.

Many times in the past I’ve warned people about this threat; I believe the collapse of our economy is one of the biggest, and most likely threats we will face in the coming years.

Our country currently sits at over $17 TRILLION in debt. While that number seems absolutely insane, it’s sadly only a small fraction of what this country actually owes. You see, when you add in the unfunded liabilities that the government conveniently leaves out of its debt calculations that number soars to over $120 trillion. YEP, $120 TRILLION!

When you add in costs like Social Security, Medicare, Obamacare and federal employees’ future retirement benefits, the numbers point to only one possible outcome: ECONOMIC COLLAPSE

In my opinion, there simply is no way out of this mess. The government has built our economy on top of a Ponzi scheme, in which they have to keep adding debt just to keep up the illusion of a vibrant economy. Over the last couple of weeks politicians have been up in arms about the possibility of Detroit going bankrupt; what they should really be concerned about is the fact that WE ARE ALL DETROIT.

The United States is Bankrupt. We may not admit it, but there’s really no way around it. There simply isn’t enough money, and there never will be enough money, to pay off even a fraction of the debt that our government has rung up.

But the stock markets higher than ever… Aren’t you just Fear mongering?

If only it were that easy. I love when people think the stock market is somehow an indicator of the health of our economy; it’s not. That being said, looking at the stock market’s past can give you a good idea of where we are heading.

For those that want to look at the numbers, and pretend the economy is just chugging along, let me remind you that the same thing happened right before the crash in 2008, and right before the crash of 1929 that plunged us into the Great Depression.

Still not convinced?

Well maybe you should look at what Bank of America’s own internal strategy team has to say about the stock market. According to BofA, its top clients are dumping their stocks, and their doing so at the highest level on record. If the stock market is stable, why are the richest Americans pulling out?

Life rarely goes as planned. For Preparedness minded people, having an emergency fund just makes sense.

Just like every other area of preparedness, there are steps you can take to prepare yourself for the possibility of an economic collapse. One of those steps is starting, and maintaining an emergency fund. When it comes to preparing for economic troubles, this is one of the best ways to ensure your survival.

This may sound like an odd bit of advice, especially since most of the so-called survival experts you hear from recommend things like stocking up on precious metals. In my opinion, having cash on hand is going to be so much more important than having precious metals, and this all has to do with the initial phase of the collapse.

Even during a total financial collapse, cash will still play a major role in how people buy and sell during the initial stages of the crisis. Should there be a run on the banks, people will be desperate for cash and will be willing to sell just about anything to get it. During the initial phase of any collapse, your paper currency will have a perceived value for at least a couple of weeks, if not longer. During this time, you can use your reserve to make any last-minute purchases to further strengthen your survival stockpiles.

Get out of Debt

This, just like the last piece of advice, probably seems strange. I mean who cares about debt in an economic collapse right? WRONG!

Just look at what happened during the economic trouble in 2008. Millions of people lost their homes, lost their jobs and had property repossessed by the banks. In an economic collapse that is drawn out over a number of years – like the one I believe we may be in the middle of – the possibility of losing your home, or your property to debt collectors becomes a real threat.

Start taking steps to ensure you have the supplies you need to survive.

I recommend reading the following articles, and following the advice within them, to make sure you’re prepared for the coming chaos.

So I was wandering…what’s a couple to do if they still owe 125k on their house which is where their food, water, animals, etc. are?? If SHTF we can live for a loooong time here, but if we get kicked out of our house…? There’s no way to pay it off that quick! won’t the banks have to offer some kind of plan before they put 90% of americans on the streets…seriously not that many people live in a place that’s paid off, do they??

I would make it a top priority to pay it down as quickly as possible. I think there were a lot of people who thought the same thing over the last 5 years who now find themselves homeless because the banks bundled these properties and resold them to hedgefunds, the Chinese and investors.

But if it really gets that bad won’t there be no power, no computers, mail, phones, email, etc. and all the bank workers, govt, and law agents will be at home protecting their own? How and who is going to process and enforce all those billions of repos and foreclosures?

I think the article points out correctly that the collapse will be a slow painful process where many people will lose everything before it gets real bad. It’s making it through the slow part that’s the most important. Once it crashed for good they won’t be able to keep foreclosing.

The tough part is these bastards are greedy and will try to suck every penny from you until they can’t suck anymore.

I think the problem with thinking that debts will be wiped out in a collapse is as Southern Pride points out – the collapse could be long, painful and we have no way of knowing exactly what will happen.

Back in 2008, a number of people stopped paying their mortgages thinking there was no way the banks could foreclose on that many people. They felt the banks would have to make a deal with them. Well the banks didn’t make a deal with most of them and instead foreclosed on the properties. There have been over 7 million foreclosures since 2010 alone.

In my opinion, if you have a mortgage the best thing you can do is have an emergency fund that can keep you afloat should you lose your income, and then pay it down as fast as possible.

what if it is year 3? what if due to so many other defaults the government doubles (or triples) your property taxes? (when they want their money they will find any way necessary to get it)

i’ve known homeowners around my area where the HOA doubles or triples the monthly dues on houses in their subdivisions due to so many vacant houses – the monthly HOA payment can now be as much as some mortgages! those that refuse to pay get liens, forecloses etc all the power of the law that the owner signed over to the HOA

you think the local or federal government will not even be worse then that?

it’s good you have money set aside for taxes, but the hard reality is your house and land belongs to the government and you are paying your property taxes to rent it back from them. i too have a house and would love to consider it “mine” but the law is now completely against any individual and the founding fathers dream of ownership has morphed and now we all perpetually rent from our overlords.

I don’t think all debt is bad, and using it responsibly is not that hard. You shouldn’t have a mortgage that is 5 times your annual income – that’s insane, but the standard recommendation in real estate circles. And if you have enough savings to pay your mortgage off, doesn’t necessarily mean you should. Responsible use of leverage can greatly increase your ability to increase assets, and at 3.5% interest cost, you will never get cheaper leverage in your lifetime. If I had, and I don’t, enough to pay off my home mortgage tomorrow, I’d use it to lever up and buy a more rural backup location. If I had enough to pay for both with cash, I’d lever at least one of them up and get an overseas retreat. If I had enough cash for all three, I’d still lever at least one up and put it into assets that can generate income, preferably even after a collapse.

Despite how many will tell you to pay it off. After some years myself trying to add a little extra to the payment, I do believe the smarter thing for me to do now is save the money for future monthly payments. My logic is two fold: First is, if my income suddenly stops it will not matter that I have paid down my mortgage if I still owe on it but have no money for my regular monthly payment. And second, these past many years of fiscal austerity has seen many localities raising property taxes and insurance companies raising premiums. Any one of these things can cause you to loose the home if you can not keep up with the increases. Finally, it is likely that if the US is able to keep some sort of economic order and the tax deduction for a mortgage remains intact the deduction may be worth more than any interest saved by an early pay off.

So, personally for me I feel more comfortable with as many months/years worth of monthly payments than I do with a half paid for house that can still be taken away.

About 35% of American homes are owned free & clear. If I get in mortgage trouble, I’m not leaving until the guys with guns MAKE me leave. I won’t become homeless just because some chump in a cubicle sends me a letter. I would squat in one of the many empty homes in the area.

I guess running a Survival Blog makes u an expert on predictions. If I had a nickel for every survival blog who thinks the end is near, I would be a rich man. The worst record on “End of the World” predictions is religious leaders and people who run survival blogs.

I fail to see anyone claiming to be an ‘expert’ on anything except being one smarta**. The general idea is to try and find a way to live best if things fall apart AND anyone with common sense can see that WILL happen no matter which other doomsday senario you pick first. I fail to see any ‘end of the world’ mention here other than yours. Seems the general idea is to think ahead for your ownself, rather than ridicule others. I believe Noah had plenty of folk ridiculing abd second guessing him too.

I dont see anyone being an expert, if you dont believe that things cannot continue on their present course then why did you read the article and follow it all the way to the bottom. If were all wrong and your right then go out and spend money you dont have with the intention of never planning for future problems and live happy until something bad happens and your out on the street with nothing. However if we are right, and planned for economic issues and live within their means it is only common sense that those who prepare will be able to weather the storm so to speak easier. How many governments and cities are now in financial dire straights because they did not save for a rainy day? I guess common sense is not so common after all.

A little off-topic; but I was considering signing up with a food storage calculation site, and I’m not sure how secure or wise that would be. The site seems to be an easy and effecient way to track your supplies; but again, just not sure if it would leave me exposed in any way? Any thoughts/opinions anyone?

There are other food storage calculators that don’t require you to sign up. It might even be better to have a notebook at home. I don’t think it’s that much work to keep track of what you have. Just remember to rotate your stock. New in back – use from the front!

Not sure I would sign up for a food calculation site. To me I dont know who has that information at all and I would not share it. Keep track of your food with expected expiration of quality date and just rotate it. A notebook with the food is what I do, I dont have a lot but enough to at least get me through a month, my own kids dont even know the extend because I have cache in different areas of the property.

Just a few minutes ago, I told my husband, if a young couple came to me to be wed and asked my advice, these would be it:\
1) rent until you have a huge down payment, good jobs, and savings
2) drive those cars until paid for– or even better, buy with cash, used. Around $3000 can find you a great car today–I have a $2300 ’98 Ranger–I know–they are out there.
3) do not use credit cards; if you can’t save for it, you don’t need it

One problem with that: If TPTB want what you have bad enough, they will simply make up a piece of paper or two that says it’s actually theirs because you didn’ do or say or pay something they want. Then, they will come with more minions, with more guns than you ever dreamed existed to convince you that you should really just let them take it.

Now, if you can convince enough of your friends with guns, and your relatives with guns, and their friends and relatives with guns to come “support” you in your “negotiations” with ‘TPTB’, that might (I say just might) prolong the issue long enough the make it not so worthwhile for “them” to contest your property. However, it will take masses of people, generally, to stand up for themselves, against a government that, right now, anyway, seems Hell-bent on driving the nation into poverty and Socialism.

Personally, I think a better idea would be for the people in general to organize and execute a nation-wide strike. No one, and I mean no one go to work for about a week or so. Let’s see how the powers that be deal with that. It maybe could be done if enough people were willing to work together and support each other to see it through.

They will take your property no matter what !!! Forever wild & agenda 21 is in your backyard and 95% of you don’t even know it. They just took over 85 square miles in southern Tennessee,all in the name of conservation. The paint rock river drainage system. Will be displacing 100’s of homes and there’s nothing the people can do but go !! They are doing this all over the country !!! It’s not hard to research. It’s there,,, problem is ,, folks don’t want to face the reality of just how bad things are.

Why this fundamental problem with the Americans. are they so stupid people not to follow the protocols of the good economy. after hearing this so long years it looks like the Americans are totally non sense people . totally insane.americans are the cause for the whole world economic problem.

Hey Chan who is dumber, the ars’ who spend money with no discipline to the point they are living check to check with no savings, or the idiots who keep giving them money that they know there will be no way for them ever repay. If America was not given such credit then the government would have had to live within their means and we would not have this debt. So someone could hold an argument that the Chinese are the cause and may be the cause of an economic meltdown as they even today still buy worthless bonds.

I agree with everything and have paid off all debt, well almost all, but still owe about 18 grand on the Home Equity loan and hope to pay that off within the next year but worry about what happens when they raise the property tax so high to cover the states debts,which is happening all over, that even though you have prepared if something happens and you get behind three years the state can put up your place for auction,I have heard of where someone buys your property taxes after one year of default and then charge an outrageous price to buy it back, now your without a home that you paid for your entire adult life.
I don’t know maybe buy a used motor home to live in just in case,nothing is ever fail-safe I guess.

It is scary, also why I would rather have my possessions and some liquid assets instead of paying off the house. I dont have enough to finish paying the house off and with the ability of the government to get you out one way or the other I would rather be able to take my savings with me and at least buy some vacant land to survive off of than to put it all into my residence and then have it taxed out of my ability and lose everything. I can get a trailer if I have to to keep a roof over my head, it will be better than what most have if things get bad.